Prospects for Urban Road Pricing in Canada

Abstract

Colle (2006). Heavy single-unit vehicles pay twice as much per kilometer as do cars, and heavy multiple-unit vehicles pay three times as much.Minimum trip toll charges apply for both heavy vehicle types but not for cars.In response to criticism of high tolls, 407 ETR reached a settlement with the government of Ontario in 2006 that requires it to provide discounts to frequent users.6. To the best of my knowledge, efficient tolls for Highway 407 have never been estimated.Before the highway opened, Mekky used the EMME/2 software to simulate the effects of different toll rates on travel times, route diversion, and toll revenues.He held total numbers of trips and mode choice fixed and did not evaluate the welfare effects of tolling (Mekky 1995).To the extent that Highway 401 and alternative surface streets are underpriced, second-best tolls on Highway 407 should be set below Pigouvian (first-best) levels.However, insofar as users drive on congested links before and after taking Highway 407, second-best pricing calls for tolls above the first best.7. Transport Canada (2006b, table A2-66).8.These are the Strategic Highway Infrastructure Program, the Canada Strategic Infrastructure Fund, the Border Infrastructure Fund, and the Municipal Rural Infrastructure Fund. 9. Department of Finance, Budget 2007 (www.budget.

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